OpenAI Cites US Roots to Dodge India Courts Over Copyright Case

But Lawyers Say Case Can Be Heard as Telegram Failed With Similar Defense in 2022

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NEW DELHI — OpenAI faces an uphill climb as it argues that Indian courts cannot hear lawsuits about its US-based business in the country, where Telegram has failed with similar defenses and US technology firms have faced government heat on compliance.

OpenAI, which counts India as its second-biggest market with millions of users, is locked in an intense court battle triggered by domestic news agency ANI for alleged use of copyright content.

The case gained prominence in recent weeks as book publishers and media groups, including those of billionaires Gautam Adani and Mukesh Ambani, banded together to oppose OpenAI in the case.

OpenAI, which is facing new challenges from Chinese start-up DeepSeek’s breakthrough cheap AI computing, has maintained it builds its AI models using public information in line with fair use principles. It faces similar copyright infringement lawsuits in the US, Germany, and Canada.

Details of legal rebuttals by OpenAI in other markets are not known, but in New Delhi it is opposing ANI by saying in court filings its usage terms call for dispute resolution only in San Francisco; it is beyond the jurisdiction of Indian courts and it “does not maintain any servers or data centers” in the country.

“It’s a pre-internet-era argument which will not fly in Indian courts today,” said Mr. Dharmendra Chatur, a partner at Poovayya & Co., which advises foreign tech companies.